Australia’s capital city housing market has achieved an unprecedented milestone, with the median house price exceeding $1 million for the first time in February. This remarkable surge occurred despite the Reserve Bank of Australia’s recent decision to implement a 25 basis point interest rate increase, bringing the official cash rate to 3.85%.
According to the latest PropTrack data analysis, capital city house prices experienced a 0.5% monthly increase, pushing the national median to a record $1,004,000. The market demonstrated broad-based strength with every capital city registering price growth during February.
Hobart emerged as the standout performer with a robust 1% monthly increase, reaching a median price of $718,000. Brisbane and Adelaide followed closely, both recording 0.7% gains. Brisbane’s annual performance has been particularly impressive, with prices surging $153,500 over the past year to establish a new median of $1,046,000. Adelaide similarly appreciated by $118,600 to reach $929,000.
Major markets Sydney and Melbourne maintained steady growth with increases of 0.5% and 0.3% respectively. Sydney’s median house price now stands at $1,255,000. Regional markets outperformed capital cities with a 0.6% monthly increase and a striking 10.5% annual growth rate, continuing a five-year trend of regional outperformance.
REA Group senior economist Eleanor Creagh noted that the national increase represents the fastest annual pace of growth since June 2022. She highlighted Hobart’s reacceleration, attributing it to significantly reduced market inventory, with total stock down approximately 30% over the past year.
The market dynamics show an interesting shift, with capital city unit growth outperforming houses both quarterly and annually across most markets, indicating buyer preference for more affordable options amid rising interest rates.